Nintendo Hit by Rising Switch 2 Production Costs as RAM Prices Spike Globally

Nintendo is reportedly running into a problem that nobody in gaming can avoid right now. Here, the problem I’m talking about is the bump in memory prices globally. And, it seems, the Switch 2 is taking the hit right now.

The global RAM crunch is the result of data centers buying up every available chip. And, it is reportedly increasing the production costs for next-gen hardware. Speaking of this in the context of the Switch 2, the device relies on the 12 GB RAM, which reportedly saw a 41% price jump in Q4 alone.

NAND flash isn’t far behind, as it bumped up another 8%, which hits the console production cost like never before. If prices keep rising, accessory costs could creep up, too, which pushes the overall purchasing price for players out there.

According to a report, some OEMs like Transcend and Adata are struggling to secure flash chips altogether, and the supply side is starting to look shaky. Why this matters, you may ask, right? Well, that’s mostly because many Switch 2 titles already take up a lot of the internal storage, which makes microSD cards essential on day one.

Earlier reports also suggested that Nintendo was already working with small margins on the Switch 2, especially outside Japan. This also means that if the prices continue to creep up, the Nintendo Switch 2 might be close to break-even or even loss-making on hardware in certain regions. Also, don’t forget to factor in Trump’s tariff on all those problems.

Rishaj is a tech writer who has been writing professionally for over four years, with a passion for Android, Windows, and all things tech. He initially joined Windows Report as a tech journalist and is now taking over as a news editor. When he’s not breaking the keyboard, you can find him cooking, or listening to music/podcasts.